Exhibit 99
SYNOVUS(R)[Logo] NEWS RELEASE
For Immediate Release
- ---------------------
Contact: Patrick A. Reynolds
Director of Investor Relations
(706) 649-4973
Synovus Reports 15% Increase in Net Income for First Quarter 2002
Net Interest Income, Expense Control, and TSYS Drive Profitability
Columbus, Ga., April 15, 2002 -- Synovus (NYSE: "SNV"), the Columbus,
Ga.-based multi-financial services company, today announced net income was $82.8
million for the first quarter 2002, up 15%, compared to $71.9 million for the
same period in 2001. Diluted earnings per share were $0.28 for the quarter, up
12.5% over last year's $0.25. Major contributors to the growth in net income
include strong loan growth, coupled with improving net interest margin, and
expense control management. TSYS' net income growth positively impacted the
consolidated growth in net income.
"We are very pleased to report excellent first quarter results," said James
H. Blanchard, Synovus Chairman and Chief Executive Officer. "Our outstanding
loan growth of 14% over last year, coupled with continued strong credit quality,
added substantially to our excellent results. Net interest margin improved to
4.77% from last year's 4.55%, leading to our 18% increase in net interest income
over last year. TSYS increased net income by 22% over last year in a challenging
environment. Throughout the Synovus family of companies, our commitment to
controlling our expenses - overall a 7% increase over last year - contributed
extensively to our excellent results in the quarter."
Return on assets for the quarter was 2.03% and return on equity was 19.52%,
as compared to 1.97% and 20.08%, respectively, for the first quarter 2001.
Shareholders' equity at March 31, 2002, was $1.728 billion, which represented a
very strong 10.33% of quarter-end assets. Total assets ended the quarter at
$16.7 billion, an increase of 10.2% from the same period last year.
Asset quality remained strong during the first quarter. Reflecting the
emphasis on high credit quality and credit management, the ratio of
nonperforming assets to loans and other real estate was 0.58%, the allowance for
loan losses was 1.38% of loans, and net charge-offs were 0.29% of average loans
for the first quarter, as compared to 0.54%, 1.38% and 0.39%, respectively, in
the previous quarter. The allowance for loan losses provides coverage of 313% of
nonperforming loans and the provision for loan losses covered net charge-offs by
1.44x for the quarter.
Synovus Financial Services' (formerly banking operations) revenues
increased 12% over the same period last year, while net income increased 14%
over last year. Return on assets for the quarter was 1.54% and return on equity
was 18.99%, compared to 1.52% and 19.56%, respectively, in the first quarter of
2001. Net interest income increased by 18.5% versus the first quarter last year,
due to net loan growth of 13.8% and a net interest margin of 4.77%, up from
4.55% in the previous quarter. Financial Services' non-interest income was down
3% as compared to the first quarter last year, due
Post Office Box 120 / Columbus, GA 31902
www.synovus.com
Synovus Reports 15% Increase in Net Income for First Quarter/p. 2
primarily to last year's $8 million gain from the sale of our ownership in the
Star System ATM network, the equivalent of 1.67(cent) per share after-tax.
Without this gain, Financial Services' non-interest income would have increased
10% fundamentally, with increases in mortgage banking of 3% (after being up 104%
for the same period last year), service charges on deposits of 11%, and credit
card fees of 9% over the same period last year. Financial Management Services
and insurance (formerly wealth management) revenues increased 19% over the first
quarter last year, with trust up 19%, brokerage up 7%, Creative Financial Group
up 13%, and insurance up 85%. Financial Services' non-interest income as a
percentage of banking revenues -- excluding securities gains/losses -- was 25%
in the quarter. The fundamental Financial Services' G&A expenses for the quarter
were up 7.8% over last year. The efficiency ratio for the quarter was 53.7%
versus 54.5% for the first quarter 2001.
TSYS reported net income of $26.9 million for the first quarter 2002, a
22.3% increase in net income over the same period last year. Diluted earnings
per share for the quarter increased to $0.14, up from $0.11 last year.
International revenues for the first quarter increased 88% over the first
quarter last year, due to the European expansion and conversions that occurred
in the second and third quarters last year. On the domestic front, TSYS
converted 12 million accounts of the Charming Shoppes' retail card portfolio in
the first quarter. With TSYS' contribution, Synovus' total non-interest income
- -- excluding securities gains/losses and reimbursable items at TSYS -- was 57.3%
of revenues for the quarter versus 60.3% in the same period last year.
2002 is an extremely challenging year for TSYS. TSYS' forecast for the year
includes potential revenues from both prospective and existing clients, and also
an intense focus on aggressive expense control. Against this backdrop, TSYS
remains cautiously optimistic it can achieve its goal of growing net income by
20% in 2002 over 2001. Adverse developments with respect to any of these matters
could cause TSYS to fall short of its goal of growing net income by 20% in 2002.
Blanchard concluded, "Our vision is for Synovus to be the finest financial
services company in the world. We believe that our current strategies, team
members, technological advantages, and our strong balance sheet position us well
for future earnings growth. Though today's business environment is marked with
uncertainty, we cautiously reiterate our expectations of at least 15% growth in
earnings per share in 2002 and to be in the 15-18% range of earnings growth for
2003."
Synovus will host an earnings highlights conference call at 8:30 ET, on
April 16, 2002. The conference call can be accessed at www.synovus.com. Please
log on 5-10 minutes ahead of the call time.
Synovus (NYSE: "SNV") is a diverse financial services holding company with
more than $16.7 billion in assets based in Columbus, Ga. Synovus provides
integrated financial services including banking, financial management,
insurance, mortgage and leasing services through 38 affiliate banks and other
Synovus offices in Georgia, Alabama, South Carolina and Florida; and electronic
payment processing through an 81.1-percent stake in TSYS (NYSE: "TSS"), the
world's largest third-party processor of international payments. Synovus is No.
5 on FORTUNE magazine's list of "The 100 Best Companies To Work For" in 2002.
See Synovus on the Web at www.synovus.com.
This press release contains statements that constitute "forward-looking
statements" within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, among others, statements
regarding Synovus' expected growth in earnings per share and TSYS' expected
growth in net income and the assumptions underlying such statements, including,
with respect to Synovus' expected increases in earnings per share; expected
increases in banking services' net income and loan growth; expected annual
increases in Financial Management Services and
Post Office Box 120 / Columbus, GA 31902
www.synovus.com
Synovus Reports 15% Increase in Net Income for First Quarter /p. 3
insurance revenues; expected annual increases in net income of TSYS; and
expected annual increases in Financial Services' expenses. Prospective investors
are cautioned that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that actual results
may differ materially from those contemplated by such forward-looking
statements. A number of important factors could cause actual results to differ
materially from those contemplated by the forward-looking statements in this
press release. Many of these factors are beyond Synovus' ability to control or
predict. These factors include, but are not limited to, Synovus' inability to
achieve its net income goals for banking services; Synovus' inability to
increase its revenues derived from Financial Management Services and insurance;
TSYS' inability to achieve its net income goals for the years 2002 through 2003
(whether arising out of TSYS' inability to successfully bring new products and
services to market, including, but not limited to, stored value and e-commerce
products; and other processing services, adverse developments with respect to
TSYS' sub-prime clients, TSYS' inability to control expenses, or otherwise);
competitive pressures arising from aggressive competition from other lenders;
factors that affect the delinquency rate on Synovus' loans and the rate at which
Synovus' loans are charged off; changes in the cost and availability of funding
due to changes in the deposit market and credit market, or the way in which
Synovus is perceived in such markets; changes in prevailing interest rates; the
timely development of competitive new products and services and the acceptance
of such by customers; Synovus' inability to control expenses; a deterioration in
credit quality or a reduced demand for credit; and the effects of changes in
government policy and regulations, including restrictions and/or limitations
arising from banking laws, regulations and examinations. Additional factors that
could cause actual results to differ materially from those contemplated in this
press release can be found in Synovus' filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K. We believe these forward-looking
statements are reasonable; however, undue reliance should not be placed on any
forward-looking statements, which are based on current expectations.
###
Post Office Box 120 / Columbus, GA 31902
www.synovus.com
<page>
Synovus
INCOME STATEMENT Three Months Ended
(Amounts in thousands, except per share data) March 31,
------------------------------------------------
2002 2001 Change
------------------------------------------------
Interest Income (Taxable Equivalent) $ 259,844 294,305 (11.7)%
Interest Expense 85,456 146,200 (41.5)
--------------- ------------ ---------
Net Interest Income (Taxable Equivalent) 174,388 148,105 17.7
Tax Equivalent Adjustment 1,771 1,692 4.7
--------------- ------------ ---------
Net Interest Income 172,617 146,413 17.9
Provision for Loan Losses 13,109 10,987 19.3
--------------- ------------ ---------
Net Interest Income After Provision 159,508 135,426 17.8
--------------- ------------ ---------
Non-Interest Income:
Data Processing 160,066 149,340 7.2
Service Charges on Deposits 22,172 20,037 10.7
Fees For Trust Services 6,916 5,790 19.4
Brokerage Revenue 4,644 4,326 7.4
Mortgage Banking Income 8,739 8,469 3.2
Credit Card Fees 4,796 4,412 8.7
Securities Gains (Losses) 929 418 122.2
Other Fee Income 4,746 4,337 9.4
Other Non-Interest Income 19,300 25,889 (25.5)
--------------- ------------ ---------
Non-Interest Income before Reimbursable Items 232,308 223,018 4.2
Reimbursable Items 56,990 62,562 (8.9)
--------------- ------------ ---------
Total Non-Interest Income 289,298 285,580 1.3
--------------- ------------ ---------
Non-Interest Expense:
Personnel Expense 142,071 134,268 5.8
Occupancy & Equipment Expense 61,069 57,274 6.6
Other Non-Interest Expense 54,386 49,632 9.6
--------------- ------------ ---------
Non-Interest Expense before Reimbursable Items 257,526 241,174 6.8
Reimbursable Items 56,990 62,562 (8.9)
--------------- ------------ ---------
Total Non-Interest Expense 314,516 303,736 3.5
--------------- ------------ ---------
Minority Interest in Consolidated Subsidiaries 5,088 4,205 21.0
Income Before Taxes 129,202 113,065 14.3
Income Tax Expense 46,450 41,180 12.8
--------------- ------------ ---------
Net Income 82,752 71,885 15.1
=============== ============ =========
Basic Earnings Per Share 0.28 0.25 12.3
Diluted Earnings Per Share 0.28 0.25 12.5
Dividends Declared Per Share 0.15 0.13 15.7
Return on Assets 2.03 % 1.97 6 bp
Return on Equity 19.52 20.08 (56)
Average Shares Outstanding - Basic 294,927 287,707 2.5 %
Average Shares Outstanding - Diluted 300,158 293,248 2.4
bp - change is measured as difference in basis points.
On January 1, 2002, Synovus adopted the provisions of the Financial Accounting
Standards Board Staff Announcement Topic D-103, Income Statement
Characterization of Reimbursements Received for Out-of-Pocket Expenses Incurred.
The Announcement requires that reimbursements received for out-of-pocket
expenses be characterized as revenue. These items are reflected as reimbursable
items on the accompanying income statements. All prior periods presented have
been restated to conform with the new presentation.
<page>
Synovus
INCOME STATEMENT
(Amounts in thousands, except per share data) 2002 2001 1st Quarter
-------------------------------------------------------------- ------------
First Fourth Third Second First '02 vs. '01
Quarter Quarter Quarter Quarter Quarter Change
-------------------------------------------------------------- ------------
Interest Income (Taxable Equivalent) $ 259,844 271,378 282,587 289,867 294,305 (11.7)%
Interest Expense 85,456 98,716 122,035 134,146 146,200 (41.5)
------------- --------- ---------- --------- ---------- ------------
Net Interest Income (Taxable Equivalent) 174,388 172,662 160,552 155,721 148,105 17.7
Tax Equivalent Adjustment 1,771 1,890 1,834 1,833 1,692 4.7
------------- --------- ---------- --------- ---------- ------------
Net Interest Income 172,617 170,772 158,718 153,888 146,413 17.9
Provision for Loan Losses 13,109 16,717 10,799 13,170 10,987 19.3
------------- --------- ---------- --------- ---------- ------------
Net Interest Income After Provision 159,508 154,055 147,919 140,718 135,426 17.8
------------- --------- ---------- --------- ---------- ------------
Non-Interest Income:
Data Processing 160,066 166,866 161,892 159,299 149,340 7.2
Service Charges on Deposits 22,172 24,182 21,152 21,168 20,037 10.7
Fees For Trust Services 6,916 7,294 6,637 6,788 5,790 19.4
Brokerage Revenue 4,644 4,020 3,858 4,159 4,326 7.4
Mortgage Banking Income 8,739 10,668 8,938 10,197 8,469 3.2
Credit Card Fees 4,796 5,878 5,553 5,341 4,412 8.7
Securities Gains (Losses) 929 539 337 428 418 122.2
Other Fee Income 4,746 4,613 4,109 4,140 4,337 9.4
Other Non-Interest Income 19,300 23,491 16,883 20,080 25,889 (25.5)
------------- --------- ---------- --------- ---------- ------------
Non-Interest Income before Reimbursable Items 232,308 247,551 229,359 231,600 223,018 4.2
Reimbursable Items 56,990 55,450 54,993 59,560 62,562 (8.9)
------------- --------- ---------- --------- ---------- ------------
Total Non-Interest Income 289,298 303,001 284,352 291,160 285,580 1.3
------------- --------- ---------- --------- ---------- ------------
Non-Interest Expense:
Personnel Expense 142,071 152,920 141,455 137,441 134,268 5.8
Occupancy & Equipment Expense 61,069 59,749 58,088 60,541 57,274 6.6
Other Non-Interest Expense 54,386 49,592 48,911 49,923 49,632 9.6
------------- --------- ---------- --------- ---------- ------------
Non-Interest Expense before Reimbursable Items 257,526 262,261 248,454 247,905 241,174 6.8
Reimbursable Items 56,990 55,450 54,993 59,560 62,562 (8.9)
------------- --------- ---------- --------- ---------- ------------
Total Non-Interest Expense 314,516 317,711 303,447 307,465 303,736 3.5
------------- --------- ---------- --------- ---------- ------------
Minority Interest in Consolidated Subsidiaries 5,088 5,651 4,976 5,027 4,205 21.0
Income Before Taxes 129,202 133,694 123,848 119,386 113,065 14.3
Income Tax Expense 46,450 48,483 44,943 43,771 41,180 12.8
------------- --------- ---------- --------- ---------- ------------
Net Income 82,752 85,211 78,905 75,615 71,885 15.1
============== =========== ========= ========== ========== ============
Basic Earnings Per Share 0.28 0.29 0.27 0.26 0.25 12.3
Diluted Earnings Per Share 0.28 0.29 0.27 0.26 0.25 12.5
Dividends Declared Per Share 0.15 0.13 0.13 0.13 0.13 15.7
Return on Assets 2.03 % 2.11 2.02 2.00 1.97 6 bp
Return on Equity 19.52 20.51 19.93 19.96 20.08 (56)
Average Shares Outstanding - Basic 294,927 292,271 290,868 290,315 287,707 2.5 %
Average Shares Outstanding - Diluted 300,158 296,556 297,357 296,218 293,248 2.4
bp - change is measured as difference in basis points.
On January 1, 2002, Synovus adopted the provisions of the Financial
Accounting Standards Board Staff Announcement Topic D-103, Income Statement
Characterization of Reimbursements Received for Out-of-Pocket Expenses Incurred.
The Announcement requires that reimbursements received for out-of-pocket
expenses be characterized as revenue. These items are reflected as reimbursable
items on the accompanying income statements. All prior periods presented have
been restated to conform with the new presentation.
<page>
Synovus
SELECTED BALANCE SHEET DATA
(Amounts in thousands, except per share data) 2002 2001 1st Quarter
---------------------------------------------------------------- -------------
First Fourth Third Second First '02 vs. '01
Quarter Quarter Quarter Quarter Quarter Change
---------------------------------------------------------------- -------------
Total Assets $ 16,725,734 16,654,891 15,778,234 15,651,115 15,178,638 10.2 %
Investment Securities 2,076,461 2,088,287 2,087,135 2,065,125 2,063,315 0.6
Loans (net of unearned income) 12,698,763 12,417,917 11,852,572 11,604,690 11,155,864 13.8
Total Deposits 12,451,008 12,146,198 11,525,774 11,561,515 11,487,328 8.4
Demand Deposits 1,918,674 1,984,524 1,750,644 1,822,591 1,725,783 11.2
Certificates of Deposit 5,177,699 5,183,225 5,200,227 5,238,816 5,368,835 (3.6)
Savings Accounts 447,737 420,311 422,393 420,520 423,292 5.8
NOW Accounts 1,974,827 1,916,259 1,677,840 1,717,637 1,638,446 20.5
Money Market 2,932,071 2,641,879 2,474,670 2,361,951 2,330,972 25.8
Shareholders' Equity 1,728,095 1,694,946 1,618,271 1,550,559 1,501,444 15.1
Book Value Per Share 5.85 5.75 5.56 5.34 5.18 12.9
Equity to Assets 10.33 10.18 10.26 9.91 9.89 44 bp
Loan to Deposit Ratio 101.99 102.24 102.84 100.37 97.11 488
Demand Deposits / Total Deposits 15.41 16.34 15.19 15.76 15.02 39
Common Shares Outstanding 295,252 294,674 291,057 290,615 289,766 1.9 %
CREDIT QUALITY DATA
(Dollars in thousands) 2002 2001 1st Quarter
---------------------------------------------------------------- -------------
First Fourth Third Second First '02 vs. '01
Quarter Quarter Quarter Quarter Quarter Change
---------------------------------------------------------------- -------------
Nonperforming Loans $ 55,791 51,585 49,197 40,168 42,221 32.1 %
Other Real Estate 17,970 15,867 14,720 16,458 12,309 46.0
Nonperforming Assets 73,761 67,452 63,917 56,626 54,530 35.3
Allowance for Loan Losses 174,774 170,769 162,117 159,600 153,916 13.6
Net Charge-Offs - Quarter 9,104 12,023 8,280 7,486 7,198 26.5
Net Charge-Offs - YTD 9,104 34,988 22,965 14,684 7,198 26.5
Net Charge-Offs / Average Loans - Quarter 0.29 0.39 0.28 0.26 0.26
Net Charge-Offs / Average Loans - YTD 0.29 0.30 0.27 0.26 0.26
Nonperforming Loans / Loans & ORE 0.44 0.42 0.42 0.35 0.38
Nonperforming Assets / Loans & ORE 0.58 0.54 0.54 0.49 0.49
Allowance / Loans 1.38 1.38 1.37 1.38 1.38
Allowance / Nonperforming Loans 313.27 331.04 329.52 397.33 364.55
Allowance / Nonperforming Assets 236.95 253.17 253.64 281.85 282.26
bp - change is measured as difference in basis points.
<page>
Synovus
AVERAGE BALANCES AND YIELDS/RATES
(Amounts in thousands)
2002 2001
---------------------------------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------------------
Interest Earning Assets
- ----------------------------------------
Investment Securities $ 2,038,865 2,025,366 2,011,548 2,023,000 2,019,418
Yield 6.08 % 6.19 6.34 6.38 6.49
Loans, Net $ 12,401,910 11,967,899 11,498,072 11,183,502 10,875,712
Yield 7.31 % 7.79 8.50 9.05 9.58
Mortgage Loans Held for Sale $ 276,682 262,476 181,372 204,998 143,613
Yield 6.65 % 6.78 7.34 7.36 7.43
Federal Funds Sold $ 61,136 40,360 110,100 105,411 116,245
Yield 2.40 % 3.73 3.80 4.61 5.90
Time Deposits with Banks $ 3,328 3,561 4,087 6,234 5,598
Yield 1.65 % 2.29 3.62 5.40 5.05
- ----------------------------------------------------------------------------------------------------------------------------------
Total Interest Earning Assets $ 14,781,921 14,299,662 13,805,179 13,523,145 13,160,586
Yield 7.11 % 7.54 8.13 8.59 9.05
- ----------------------------------------------------------------------------------------------------------------------------------
Interest Bearing Liabilities
- ----------------------------------------
Time Deposits Over $100,000 $ 2,569,115 2,596,808 2,583,032 2,651,781 2,655,281
Rate 3.89 % 4.51 5.28 5.86 6.45
Time Deposits Under $100,000 $ 2,439,460 2,526,555 2,602,377 2,653,134 2,653,402
Rate 4.07 % 4.78 5.48 5.94 6.19
Other Interest Bearing Deposits $ 5,215,169 4,777,271 4,459,166 4,310,544 4,159,123
Rate 1.32 % 1.56 2.44 2.88 3.55
Federal Funds Purchased $ 1,290,957 1,334,622 1,207,804 1,084,710 939,064
Rate 1.70 % 2.00 3.48 4.23 5.59
Other Short-Term Borrowings $ 9,428 8,707 20,228 6,530 8,687
Rate 1.38 % 2.16 3.24 3.97 5.14
Other Borrowings $ 1,082,675 963,619 923,290 884,027 867,715
Rate 5.19 % 5.38 5.74 6.14 6.38
- ----------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities $ 12,606,804 12,207,582 11,795,897 11,590,726 11,283,272
Rate 2.74 % 3.20 4.10 4.63 5.24
- ----------------------------------------------------------------------------------------------------------------------------------
Non-Interest Bearing Demand Deposits $ 1,826,432 1,755,795 1,693,111 1,691,382 1,634,027
Shareholders' Equity $ 1,719,380 1,647,933 1,570,921 1,519,296 1,451,560
Total Assets $ 16,522,858 16,021,119 15,472,034 15,191,121 14,788,857
- ----------------------------------------------------------------------------------------------------------------------------------
Spread 4.37 % 4.33 4.03 3.96 3.81
Net Interest Margin 4.77 % 4.80 4.62 4.61 4.55
- ----------------------------------------------------------------------------------------------------------------------------------